BARBOLEARY
Posts: 52 Joined: 6-May-2014 3:04pm Location: VIRGINIA (VA)Does anyone know what should be done if the beneficiaries will not give the Administrator their Social Security Numbers for the 1041?
Stop overpaying for your tax firm website.
JAD
Posts: 4212 Joined: 21-Apr-2014 8:58am Location: CaliforniaI suppose that you could tell them that you can't distribute anything if you can't report it, and you can't report it without their SSNs.
12-Jul-2016 3:40pm
mscash
Posts: 517 Joined: 28-Apr-2014 1:26pm Location: Modesto, CaliforniaTreat them like independent contractors who won't give you their SSN until you start withholding from their distributions.
12-Jul-2016 5:00pm
JAD
Posts: 4212 Joined: 21-Apr-2014 8:58am Location: CaliforniaIs that for real? If you have a $10,000 interest income allocation to a beneficiary who won't give the SSN, are we really supposed to withhold?
12-Jul-2016 5:03pm
WEISSEA
Posts: 2076 Joined: 21-Apr-2014 5:20pm Location: California and Nevada Do backup withholding out of their distribution. That will get their attention. 12-Jul-2016 5:11pm
kbairtax
Posts: 1246 Joined: 22-Apr-2014 5:22pm Location: Upstate, NYJAD wrote: Is that for real? If you have a $10,000 interest income allocation to a beneficiary who won't give the SSN, are we really supposed to withhold?
Isn't back up withholding mandatory for payments made to those that will not furnish SSN's?? You then pay it to the IRS like you do any other tax withholding and it goes into a pool of unallocated funds. Then it is up to the individual to prove the withholding belongs to them. Fun.
12-Jul-2016 5:53pm
Nilodop
Posts: 19599 Joined: 21-Apr-2014 9:28am Location: Pennsylvania § 301.6109-1 Identifying numbers. (c) Requirement to furnish another's number.When the person making the return, statement, or other document does not know the number of the other person, and has complied with the request provision of this paragraph (c), such person must sign an affidavit on the transmittal document forwarding such returns, statements, or other documents to the Internal Revenue Service, so stating.
§ 31.3406(h)-2 Special rules.
(c) Trusts. Withholding under section 3406 applies to reportable payments made to a trust if any of the conditions for imposing withholding under section 3406 apply to the trust. Generally, a trust is not a payor and will not be required to withhold under section 3406 on reportable payments that it makes to its beneficiary who is subject to withholding under section 3406. The preceding sentence does not apply, however, to a grantor trustdescribed in § 31.3406(a)-2(b)(1) or (2), which is treated as a payor. The trustee of a trust described in this paragraph (c) may certify that the trust's taxpayer identification number is correct and that the trust is not subject to withholding due to notified payee underreporting, without regard to the status of the beneficiaries of the trust.
